Rules of Conduct (Level 3) Flashcards
What are the rule changes?
The Rules of Conduct 2021 Global Practice Statement overhauled the previous separate documents which were the Rules of Conduct for Members, Rules of Conduct for Firms and Global Professional and Ethical Standards.
The New Rules of Conduct took effect from 2nd February 2022.
What are the new rules of conduct?
Rule 1: Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
Rule 2: Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
Rule 3: Members and firms must provide good-quality and diligent service.
Rule 4: Members and firms must treat others with respect and encourage diversity and inclusion.
Rule 5: Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.
Talk us through your understanding of the changes to the rules of conduct?
The Rules of Conduct October 2021 Global Practice Statement will overhaul the previous separate document:
Rules of Conduct for Members
Rules of Conduct for Firms.
Global Professional and Ethical Standards.
Appendix A of the Rules of Conduct now contains the professional obligations of Members and Firms.
Why did the previous rules of conduct change?
The previous rules ad been in place since 2007.
Following research and consultation with RICS Members, Firms and Members of the public, the majority voted in favour of replacing the existing Rules of Conduct and Separate Global Professional and Ethical Standards.
This was to provide a single document to enable greater clarity for RICS Members and Firms.
There is now a greater focus on clearer example behaviours, understanding evolving technology and tackling climate change.
What are the professional obligations of members?
- Members must comply with the CPD requirements set by the RICS which requires 20 hours of CPD for each calendar year, 10 hours of which must be formal CPD.
- Members must cooperate with RICS.
- Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
What are the professional obligations of Firms?
- Firms must publish a complaints-handling procedure, which indicates an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
- Firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by RICS.
- Firms with sole principle must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
- Firms must cooperate with RICS.
- Firms must promptly provide all information reasonably requested by the standard and Regulation Board, or those exercising delegated authority on its behalf.
- Firms must display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by RICS.
- Firms must report to RICS any matter required to report under the Rules for the Registration of Firms.
Explain your understanding of Rule 1?
RICS Members and firms should not allow themselves to be influenced improperly through the acceptance of work referrals, gifts or hospitality.
Members and Firms must also be sure to identify conflicts of interest and not provide services or advice where these conflicts of interest occur.
This could be a scenario where you have reduced impartiality due to an existing relationship, for example being friends with a main contractor who has subsequently been selected to submit a tender would form a conflict of interest.
Explain your understanding of Rule 2?
Members and Firms must only act for clients where they have the necessary knowledge, skills and resources to carry out the work competently.
Firms must supervise any employees or subcontractors undertaking work on their behalf, for example, requesting that a Junior Surveyor undertakes a complex valuation due to resourcing issues would create problems in achieving compliance with this rule. Instead an experienced and suitably qualified surveyor should be asked to undertake the valuation.
Explain your understanding of Rule 3?
As an RICS member or regulated Firm we must also be sure to understand a clients’ project specific requirements before acting on their behalf. The clients’ scope of services should be agreed along with any exclusions and timescales for achieving each of the deliverables before signing up to formal terms of engagement.
Explain your understanding of Rule 4?
The RICS also expects its members to respect the rights of others and treat other with courtesy.
We need to ensure that everyone is treated fairly and look to eliminate any instances of discrimination on the basis of age, disability, gender, pregnancy, race religion or sexual orientation.
RICS members and firms also need to adopt a no tolerance policy of bullying or harassment.
Explain your understanding of Rule 5?
Members and firms are required to question practices and designs that they suspect are not right and raise concerns with colleagues, senior management, clients or the RICS.
When making public statements we need to ensure these do not undermine public confidence in the profession.
When receiving and processing complaints, we need to ensure these are delt with promptly, openly and professionally.
In complying with Rule 5, a useful sense check to ensure compliance is to ask ourselves if we would be comfortable in standing behind our actions if these were brought to the media or a public forum.
